Thanks so much for the update, despite the grim outlook. Is terminating work on the new school even possible? I thought we were locked in due to the nature of the lease certificate or can we pay the penalty to cancel it? I assume the penalty will be less than the overall cost. I am really surprised they haven't broken ground at this point.
Thanks so much for the update, despite the grim outlook. Is terminating work on the new school even possible? I thought we were locked in due to the nature of the lease certificate or can we pay the penalty to cancel it? I assume the penalty will be less than the overall cost. I am really surprised they haven't broken ground at this point.
This is a complicated question that has a complicated answer. I still believe they might as well proceed with the new school and close another building or two and transfer students around. It's going to be a big mess that was completely avoidable with some foresight.
RE: backing out - the answer I've come to is "maybe probably not" - I think it would be hard and probably unlikely they could get out of the lease certificate. BUT .. my rough understanding is that there may be secondary market options, but I am not sure on that. They better hurry up on breaking ground because there are tax implications on the certificate at some point - school districts are not allowed to act as a hedge fund, arbitraging low interest rates like they are with this pile of money.
Thanks so much for the update, despite the grim outlook. Is terminating work on the new school even possible? I thought we were locked in due to the nature of the lease certificate or can we pay the penalty to cancel it? I assume the penalty will be less than the overall cost. I am really surprised they haven't broken ground at this point.
This is a complicated question that has a complicated answer. I still believe they might as well proceed with the new school and close another building or two and transfer students around. It's going to be a big mess that was completely avoidable with some foresight.
RE: backing out - the answer I've come to is "maybe probably not" - I think it would be hard and probably unlikely they could get out of the lease certificate. BUT .. my rough understanding is that there may be secondary market options, but I am not sure on that. They better hurry up on breaking ground because there are tax implications on the certificate at some point - school districts are not allowed to act as a hedge fund, arbitraging low interest rates like they are with this pile of money.